Slide 1: Result Presentation cover letter to stock exchanges
Quick Heal Quick Heal Technologies Ltd. Security Simplified (Formerly Known as Quick Heal Technologies Pvt. Ltd.) Regd. Office: Marvel Edge, Office No. 7010 C & D, 7th Floor, Viman Nagar, Pune 411014, Tel; +91 20 66813232 | Email: info@quickheal.com CIN - U72200MH1995PLC091408 Ref No.: QHTL/Sec/SE/2
Slide 2: Q2 & H1 FY17 – Results Update
Quick Heal Technologies Limited Q2 & H1 FY17 – Results Update November 2016 1
Slide 3: Disclaimer
DISCLAIMER This presentation and the following discussion may contain “forward looking statements” by Quick Heal Technologies Limited (“Quick Heal” or the “Company”) that are not historical in nature. These forward looking statements, which may include statements relating to future results of operat
Slide 4: Discussion Summary
DISCUSSION SUMMARY • COMPANY OVERVIEW • STRATEGY & OUTLOOK • Q2 & H1 FY17 RESULT ANALYSIS • Q2 & H1 FY17 FINANCIALS • SHAREHOLDING STRUCTURE 3
Slide 5: Company Overview – Quick Heal Journey
COMPANY OVERVIEW QUICK HEAL JOURNEY 1995 - 1998 2006 - 2007 2009 - 2010 2011 • Incorporation as ‘CAT Computer • Company renamed as Quick Heal • Private Equity Investment firm Sequoia • Incorporates Quick Heal in Kenya Services Pvt. Ltd.’ Technologies Pvt. Ltd. from CAT Capital, invests in Quick Heal
Slide 6: Strong Brand Recognition and Recall
COMPANY OVERVIEW STRONG BRAND RECOGNITION AND RECALL 25.8 m 7.5 m 2.0x Growth 30% + Preferred Choice of IT technicians for PC Active Licenses across more Active Licenses over last Product Licenses Installed Retail Market Share in India Virus Cleaning than 80 countries 5 years 15,495 Retail, 476 Ente
Slide 7: Technology & Market Leadership
COMPANY OVERVIEW TECHNOLOGY & MARKET LEADERSHIP International Certificates Awards in India • 2016: Best Antivirus, 9th NCN Most Innovative Product of the Year Award • 2016: Best Make in India Brand, 14th VARINDIA IT Forum • 2016: 12th Annual Info Security PG's 2016 Global Excellence Awards, USA * Go
Slide 8: Extensive Reach & Presence
COMPANY OVERVIEW EXTENSIVE REACH & PRESENCE Quick Heal – 64 offices & warehouses across 36 cities in India INDIA (HO) UAE USA Quick Heal Technologies Quick Heal Technologies Quick Heal Technologies Head Office & R&D Center Ltd. (MENA) FZE America Inc Pune JAPAN KENYA Quick Heal Technologies Quick He
Slide 9: Strategy and Outlook
STRATEGY AND OUTLOOK • Work ongoing on several new technologies such as • Develop product for IoT and home upcoming platforms like • Focus on international Androids, Windows, security automation expansion through Linux, iOS to address • Has 4 US patents to consistent brand opportunities in its credi
Slide 10: Q2 & H1 FY17 Results Highlights
Q2 & H1 FY17 RESULTS HIGHLIGHTS In Rs. Million Q2 FY17 YoY ANALYSIS REVENUES EBITDA and EBITDA MARGIN PAT and PAT MARGIN CASH PROFIT 32.4% 50.4% 28.0% 1,067.9 45.6% 426.5 857.9 537.9 296.5 391.2 348.8 240.0 24 % 38 % 45 % 44 % Q2 FY16 Q2 FY17 Q2 FY16 Q2 FY17 Q2 FY16 Q2 FY17 Q2 FY16 Q2 FY17 EBIDTA EB
Slide 11: Q2 & H1 FY17 – Revenue Analysis
Q2 & H1 FY17 – REVENUE ANALYSIS In Rs. Million Q2 FY17 YoY ANALYSIS H1 FY17 YoY ANALYSIS SEGMENT BREAKUP * SEGMENT BREAKUP * 1,187.3 1,699.5 21.4 32.6 129.4 1,481.8 956.6 71 % 266.8 88 % 19.1 11.4 182.2 97.1 46 % 33% 1036.5 1400.0 848.1 1,280.5 9% 22 % Q2 FY16 Q2 FY17 H1 FY16 H1 FY17 % Share Q2 FY16
Slide 12: Q2 & H1 FY17 – Revenue Analysis (Licenses Sold)
Q2 & H1 FY17 – REVENUE ANALYSIS Q2 FY17 YoY ANALYSIS H1 FY17 YoY ANALYSIS NUMBER OF LICENSES SOLD (‘000) NUMBER OF LICENSES SOLD (‘000) 3,181 2,183 2,980 1,922 41 59 221 57 454 297 44 164 6% 2% 35 % 53 % 1,921 2,626 2,668 1,715 12 % 2% Q2 FY16 Q2 FY17 H1 FY16 H1 FY17 % Share Q2 FY16 Q2 FY17 % Share
Slide 13: Q2 & H1 FY17 – Employee Breakup
Q2 & H1 FY17 – EMPLOYEE BREAKUP September 2015 – 1328 June 2016 – 1,378 September 2016 – 1402 Sales & Marketing R&D Technical Support 222 210 218 Others 353 370 382 249 262 240 555 548 513 12
Slide 14: Q2 & H1 FY17 – Working Capital Analysis
Q2 & H1 FY17 – WORKING CAPITAL ANALYSIS WORKING CAPITAL ANALYSIS – SEPTEMBER 2016 4 30 79 53 Receivables Days Inventory Days Payables Days Net Working Capital Days Note: Net Working Capital Days = (Net Working Capital / Second Quarter Sales) * 91 days 13
Slide 15: Consolidated Results – Profit & Loss
Q2 & H1 FY17 CONSOLIDATED RESULTS – PROFIT & LOSS Rs Million Consolidated Head Q2 FY17 Q2 FY16 Growth % Change H1 FY17 H1 FY16 Growth % Change Revenue 1,067.9 857.9 210.0 24.4% 1,543.4 1,343.1 200.3 14.9% Direct Cost 87.3 74.1 13.2 17.9% 132.8 128.2 4.6 3.6% Gross profit 980.6 783.8 196.81 25.1% 1,4
Slide 16: Consolidated Results – Cost Breakup
Q2 & H1 FY17 CONSOLIDATED RESULTS – COST BREAKUP Rs Million Consolidated Head Q2 FY17 Q2 FY16 Q1 FY17 Operating Cost Salaries 122.4 106.3 120.8 Fees for technical services 25.2 30.7 25.1 Technology subscription charges 16.2 12.5 12.8 R&D Expenses (A) 163.8 149.5 158.8 Salaries 78.8 66.5 71.9 Adverti
Slide 17: Consolidated Results – Ratio Analysis
Q2 & H1 FY17 CONSOLIDATED RESULTS – RATIO ANALYSIS Ratio Analysis Consolidated Head Q2 FY17 Q2 FY16 H1 FY17 H1 FY16 Expenses Direct Cost / Revenue 8.2% 9.6% 8.6% 9.6% R&D / Revenue 15.3% 17.4% 20.9% 21.5% S&M / Revenue 13.4% 16.1% 19.0% 20.7% G&A / Revenue 12.7% 12.3% 18.8% 15.6% Total Cost / Revenu
Slide 18: Standalone Results – Profit & Loss
Q2 & H1 FY17 STANDALONE RESULTS – PROFIT & LOSS Rs Million Standalone Head Q2 FY17 Q2 FY16 Growth % Change H1 FY17 H1 FY16 Growth % Change Revenue 1,064.3 849.0 215.30 25.36% 1,539.4 1,328.6 210.8 15.9% Direct Cost 82.08 67.4 14.68 19.14% 125.0 116.7 8.3 7.1% Gross profit 982.22 781.6 200.62 25.90%
Slide 19: Standalone Results – Ratio Analysis
Q2 & H1 FY17 STANDALONE RESULTS – RATIO ANALYSIS Ratio Analysis Standalone Head Q2 FY17 Q2 FY16 H1 FY17 H1 FY16 Expenses Direct Cost / Revenue 7.6% 7.9% 8.1% 8.8% R&D / Revenue 15.8% 17.6% 21.0% 21.7% S&M / Revenue 12.6% 15.1% 17.5% 19.5% G&A / Revenue 11.9% 12.1% 18.3% 15.3% Total Cost / Revenue 40
Slide 20: Consolidated Results – Balance Sheet
Q2 & H1 FY17 CONSOLIDATED RESULTS – BALANCE SHEET Particulars (In Rs Mn) Sep-16 Sep-15 Particulars (In Rs Mn) Sep-16 Sep-15 Share Holders’ Funds: Non-Current Assets: Property, plant and equipment 1,721.0 1,389.4 Equity Share Capital 700.3 610.7 Capital work-in-progress 297.5 493.2 Reserves And Surpl
Slide 21: Standalone Results – Balance Sheet
Q2 & H1 FY17 STANDALONE RESULTS – BALANCE SHEET Particulars (In Rs Mn) Sep-16 Sep-15 Particulars (In Rs Mn) Sep-16 Sep-15 Share Holders’ Funds: Non-Current Assets: Property, plant and equipment 1,719.1 1,388.4 Equity Share Capital 700.3 610.7 Capital work-in-progress 297.1 493.0 Other Intangible ass
Slide 22: Shareholding Structure
SHAREHOLDING STRUCTURE Public, 13.36 Institutions, 13.77 % Shareholding – March 2016 Promoter & Promoter Group, 72.87 Source – BSE 21
Slide 23: For Further Queries
FOR FURTHER QUERIES Mr Rajesh Ghonasgi Nilesh Dalvi Quick Heal Technologies Limited Dickenson Seagull IR CFO IR Consultant Email ID: rajesh.ghonasgi@quickheal.co.in Email ID: nilesh.dalvi@dickensonir.com Contact No: +91 (20) 6681 3232 Contact No:+91 9819289131 22